Special PSV O Licences
- Do I need a PSV operator’s licence to run a local service with my taxis?
- How do I apply?
- How many vehicles can I operate?
- Are there any conditions?
- How do I register a local service?
- Are there any special rules I must obey?
- Can anyone drive the taxi on local services?
- Will my vehicles be restricted to being used to operate local services?
- Is it worth applying for any other kind of PSV operator’s licence?
This page is for proprietors of licensed taxis who want to use their vehicles to run a local service at separate fares.
Do I need a PSV operator’s licence to run a local service with my taxis?
Yes, but because you already hold a taxi licence you only need to get a special restricted PSV operator’s licence.
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How do I apply?
You can get an application form - Special Restricted PSV Operators Licence Application (PSV 356)
from the Traffic Area Office which covers the area for the district council which issued your licence. The licence will be granted once the Traffic Area Office has checked that you hold at least one taxi licence.
How many vehicles can I operate?
The licence covers you in perpetuity for all the taxis for which you hold licences. The number of vehicles you have may change during that time but you will not have to change your special licence. You will have to pay a fee every 5 years to keep your licence in force.
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Are there any conditions?
Yes. You must undertake to operate a local service. You must register the service, or in London, get a London local service licence or an agreement with London Transport Buses.
All the vehicles used under the licence must be ones for which you hold taxi licences.
Local bus services (other than excursions and tours) are the only type of PSV operation you can undertake. You cannot run any other type of PSV service with your taxis (eg an express service with stopping places more than 15 miles apart).
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How do I register a local service?
You must register your local service in the same way as other PSV operators do, please see the guide to local bus service registration elsewhere on this website.
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Are there any special rules I must obey?
Yes, on any service you run at least one stopping place must be in the area of the district council which issued your taxi licence, the other stopping places can be in any other district.
You must have a notice on the front of the vehicle with the word ‘Bus’ on it in letters 60mm high and showing either the route, the destination or the kind of service you are running.
You must have a fare table on display in the vehicle so that the passengers can check the fare for any journey, or how the fare is worked out.
The vehicles must be licensed taxis for which you have proper licences. You cannot use private hire cars under a special licence.
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Can anyone drive the taxi on local services?
No, the driver must be a licensed taxi driver and should be licensed by the same district council as the vehicle. PSV drivers must not be used unless they also hold the appropriate taxi licence.
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Will my vehicles be restricted to being used to operate local services?
No. They may be used to operate other types of taxi service when they are not being used on a local service. But while being used on a local service they must not ply for exclusive hire or pick up passengers waiting at taxi ranks but must operate the local service as registered.
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Is it worth applying for any other kind of PSV operator’s licence?
Yes, a restricted PSV operator’s licence will let you run 2 vehicles with up to 8 passenger seats as PSVs (but not as taxis) as well as your taxi(s), and if the bulk of your earnings will still be from taxi operation, you may be granted a restricted licence for 2 PSVs with up to 16 passenger seats. But you must first satisfy the Traffic Commissioner that you are of good repute, appropriate financial standing, can maintain your vehicles properly and obey all parts of PSV law. You should read Part 1 of this guide for more information.
Page last updated: 18/10/2006



